Just before a key congressional hearing on banking practices and financial access, the Federal Deposit Insurance Corporation (FDIC) has released 175 documents related to its oversight of banks involved in crypto-related activities.
The move, announced in a recent press release, offers a deeper look into the regulatory challenges these banks faced.
Acting FDIC Chairman Travis Hill stated that releasing these documents is a step toward greater transparency, going beyond what’s required under the Freedom of Information Act (FOIA). He noted that the documents reveal significant obstacles for banks, including repeated requests for more information, long delays, and instructions to pause or limit their crypto and blockchain activities.
These restrictions made it difficult for banks to move forward, forcing most to abandon their crypto plans entirely.
Previously, the FDIC had released 25 “pause” letters sent to 24 banks exploring blockchain and crypto. The latest batch of documents includes additional correspondence with these institutions, along with new communications involving other banks that were not part of the earlier disclosures.
Besides, Senator Lummis also praised FDIC’s swiftness in releasing the documents. “We are putting an END to Chokepoint 2.0,” she exclaimed.
The timing of the document release is significant, as it comes just before a scheduled congressional hearing on banking access and financial regulations. Lawmakers are expected to review the FDIC’s past treatment of crypto-related activities and discuss broader regulatory oversight issues affecting the banking sector.
As interest in digital assets continues to grow, the FDIC is reconsidering its approach to crypto banking. The agency aims to allow financial institutions to work with crypto and blockchain while ensuring financial stability.
Additionally, it is preparing to collaborate with the President’s Digital Asset Markets Working Group, established by the January 23, 2025, Executive Order, to refine its regulatory framework.
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